The deal allows Mellon to put its signature atop the 31-story, 522,843-sf tower at 1111 Brickell Ave., replacing the Barclays Financial Center logo. London-based Barclays has moved its South Florida operations to New York.
Area brokers tell GlobeSt.com the sublease is probably the largest relocation lease signed in more than two years in the Brickell financial district.
The rental rate and value of the sublease were not disclosed in a prepared statement from Insignia/ESG Inc. which negotiated for Barclays. Industry sources tell GlobeSt.com on condition of anonymity Mellon Bank paid about $26 to $27 per sf, probably escalating 3% per year.
Brokers say the Mellon rent is close to the competitive, below-market rate that Barclays paid and was not a big profit-making deal for Barclays. Average quoted rents in the building are $33.50 per sf.
"A 50,000-sf deal in the Miami-Dade market is a big deal," Graham Ehrich, an associate in the Miami office of Cushman & Wakefield of Florida Inc., tells GlobeSt.com. "That will qualify as one of the top three deals done in all [of Miami] since the beginning of the year."
Mellon Bank is moving from 1399 SW 1st Ave. to the more prominent Brickell financial hub.
The 1111 Brickell Avenue building, built in 2000, is 90% leased and owned by Madrid-based Testa, which purchased the building earlier this year.
Mellon Bank, based in Pittsburgh, will occupy the 29th and 30th floors of the building. A 25,000-sf space on the 28th floor, formerly occupied by Barclay's Bank, is still available for sublease.
Other tenants in the building include Lehman Bros., Morgan Stanley, Hunton Williams and Credit Suisse First Boston.
Randy Olen, Insignia/ESG Inc. senior managing director, and Stuart Eisenkraft, Insignia/ESG executive director of international client services in New York, subleased the Barclays Bank space.
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